Counterfeiters, hackers cost US upto $600 billion a year

Counterfeit goods, software piracy and the theft of trade secrets cost the American economy as much as $600 billion (nearly Rs 39.9 lakh crore) a year, a private watchdog says.

In a report, the Commission on the Theft of American Intellectual Property says the annual losses range from about $225 billion to $600 billion (nearly Rs 15 lakh crore - RS 39.9 lakh crore). The theft of trade secrets alone costs the United States between $180 billion (nearly Rs 11.9 lakh crore) and $540 billion (nearly Rs 35.9 lakh crore) annually. Counterfeit goods cost the United States $29 billion to $41 billion (nearly Rs 19.29 lakh crore to 27.3 lakh crore) annual; pirated software costs an additional $18 billion (nearly Rs 11.9 lakh crore) a year.

The findings echo those of the Office of the Director of National Intelligence, which in 2015 pegged the annual cost of economic espionage by computer hacking at $400 billion (nearly Rs 26.6 lakh crore).

The commission labels China the world's No. 1 culprit.

Including Hong Kong, China accounts for 87% of counterfeit goods seized entering the United States. The report says the Chinese government encourages intellectual property theft.

The commission is led by former Republican presidential candidate and Utah Gov. Jon Huntsman, who also served as US ambassador to

China, and Adm. Dennis Blair, a former director of US national intelligence.

"The vast, illicit transfer of American innovation is one of the most significant economic issues impacting US competitiveness that the nation has not fully addressed," Huntsman said. "It looks to be, must be, a top priority of the new administration."